Thursday, June 28, 2007

Banks restrict lending to the poorest borrowers, causing the average price of houses sold to go up!

U.K. House Prices Rise More Than Forecast in June

Yet another article misrepresenting the exclusion of low-priced-house borrowers by banks as a genuine surge in property prices. Banks and building societies are finally becoming more selective about who they lend to. They are less keen to lend to the 'sub-prime' market who usually occupy cheap housing. They are demanding higher deposits and giving lower multiples of salary to first-time buyers, who usually buy relatively cheap properties. They are shying away from individual But-to-Let investors, who also go for cheap flats and houses. With these groups largely now excluded, the average price is now made up of transactions at the middle and high end of the market (who have a lot of equity, which protects the banks' collateral) - so, it's no wonder the 'average' price has gone up!

Posted by royston @ 09:29 PM (481 views)
Please complete the required fields.



2 thoughts on “Banks restrict lending to the poorest borrowers, causing the average price of houses sold to go up!

  • dohousescrashinthewoods says:

    There are lies, damned lies, statistics and house price statistics.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>